of the president's cabinet walk in, there's panetta, the defense secretary and, of course, eric holdier, the attorney general, norah, you've been talking with the white house and you have some of the high points from the president's speech that we're about to here. >> o'donnell: i spoke with a senior white house advisor who said this will be more like a campaign speech than an inaugural address. the president is emboldened by his victory. they know chef a short window of time to get things done so tonight the big fuse that comes out of the speech is this: the president will call for pre-k education for all american children. he will also call for raising of the minimum wage to $9 an hour. the federal minimum wage. it's at $7.25. finally what you reported tonight that he will call for withdrawing 34,000 troops out of afghanistan by the end of the year and, of course, we're still scheduled to be in afghanistan until the end of 2014 to have some troops there. >> pelley: we're waiting for president to enter the chamber here. we expect that in another minute or two. nancy cordes is our capitol hill

correspondent and, nancy, after the president makes his remarks tonight, we'll be hearing the republican response from senator marco rubio of florida. >> reporter: that's right, scott. he's expected to say he hopes the president will "abandon his obsession with raising taxes" and he'll say president obama believes that free enterprise is the source of all of our problems. mr. rubio is really going to be focusing on the middle class, we're told, in his speech tonight. he is going to make the argument that the republican party, not the democrats, are the party that is better situated to help the middle-class and to help more people get into the middle class. he'll be followed then, scott, by a tea party representative, senator rand paul of kentucky is also going to be giving an address. the republican leadership says this is not a sign that the party is fractured but the tea party clearly wants to make its own mark and criticize both parties for what they call

overspending. >> pelley: nancy, thank you very much. a lot of issues will be covered by the president's speech tonight. we're expecting to hear from the president on immigration. also on gun control. you will notice that a lot of people in the chamber tonight are wearing green ribbons on their lapels and those are in commemoration of those students and educators who were lost at sandy hook elementary school late last year. major garrett is at the white house for us tonight, as usual. major, what are you expecting from the president? >> reporter: well, scott, as you might well imagine, there's a back store troy the way of state of the union address speech was put into motion. about two weeks ago, some very prominent washington-based democrats, some who used to work in this building, some who just wished the president well, gave the president and his speech writers a wakeup call taeufplt said listen, mr. president, while laudable, your emphasis on gun control and education isn't where most of the american people are. they're still concerned about economic growth, jobs, and many of the initiative it is president will talk about and the campaign-style rhetoric he will use to try to persuade

congress and the american public. he is focusing back on the economy as a reflection of those very intense conversations that started about two weeks ago when democrats began to worry that, though important, gun control and immigration might be taking the president off his best issue to get his second term off to a good start, which is working on the economy and doing so in a vigorous and robust way. that's the back story behind the address tonight. of course, gun control and immigration reform will be mentioned but white house advisors tell us, scott, there will be no new ideas put forward there because the ideas the president has already laid before congress are controversial enough and that politics behind them grinding and time consuming already. >> pelley: major, thank you very much. this is the house chamber in the capitol, the only room large enough to accommodate all of the members of the house of representatives and the president's cabinet and the members of the senate and their guests and the supreme court and the members of the joint chiefs oftaff. all members of the -- all dignitaries who are always

invited to the state of the union address every year bob schieffer, we were in a breakfast with speaker of the house john bane they are morning when he took a personal shot at the president that surprised me a little bit. he said that the president "didn't have the guts" to do what what needed to be done on the budget. >> it was an extraordinary session. that's exactly what he said. as you'll recall, scott, i sort of said? so many words "are you sure this is what you want to say?" and he said it again. he said it twice and he said about three times the president simply does not have the courage to take on the liberal members of his own party and do what needs to be done to reform the entitlement programs, especially social security and medicare. and, you know, liberals loved the president's inaugural speech. republicans didn't like it that much. they felt that at no time did the president reach out and ask for help. i think a lot of them are going

to be wonderin wonder will he ar help from the other side or as he simply decided that whatever he gets done he's going to get done by just ramming it through as you would in a parliamentary system of government and has he given up on trying to compromise with the other side and they, too, the other side, is wondering the same thing. i think the partisan divide, if it was wide before the president's inaugural speech, i think it is even wider tonight. >> pelley: members of the joint chiefs of staff, the military leadership there. we saw a moment ago mrs. obama in her box in the house chamber. norah o'donnell, we're just a little over two weeks away from these enormous automatic across-the-board federal spending cuts that are known in washington parlance as sequestration. but it's $1.2 trillion in cuts over the next ten years.

they're automatic. the idea behind this with the budget control act of 2011 was to make these cuts so ruinous that they would force the president and the congress to come together and find a better way and they haven't. a little over two weeksing to go before those spending cuts take effect. how do you see this playing out? >> o'donnell: a white house official told me tonight they are more optimistic this week than they were last week that they would get something done. but your conversation with speaker boehner goes right to the heart of it. when he said the president doesn't have the guts to take on his own party. because what the issue is what the republicans want is the president to raise the medicare eligibility age. but, look, we're facing job losses for many people in the defense industry. we're talking about head start, money for mental illness. these are very see severe cuts if congress does not tackle that and you're right, it's two weeks away. i think also, scott, it deserves mentions that one of the things i think going to hang over this state of the union is the issue of gun control.

as you pointed out, many of the people there, especially democrats, wearing those green ribbons that signify sandy hook elementary. there's a teacher from sandy hook who is in michelle obama's box there. the president has never mentioned gun control in any of his five state of the union addresses. it was in almost every one of president clinton's. so it's been ten years since we've had gun control talked about in a state of the union address. things have changed now that the president is reelected and less scared of the n.r.a. and so i'm told by advisors he will talk about not only universal background checks but also an assault weapons ban which has virtually no chance of passing congress. >> pelley: when you think about these budget cuts to the federal government that take effect in about two weeks, we're expecting the house sergeant at arms, paul irving, to come in. and there's paul irving now. he will be announcing the president. let's listen in.

>> mr. speaker, the president of the united states. (cheers and applause) >> schieffer: (laughs) now the first of the standing ovations. here it goes. and you know, scott, these people, these members of congress that are along the aisle there, they have been there literally for four, six, seven hours to get those places because they want to be seen on television. i mean, there's no other reason for this when the president comes down the aisle and, you know, they rehearse little speeches like they're exchanging little insider information there and they have their moment. >> pelley: well, let's listen in as the president comes into the house chamber. (cheers and applause) >> mr. president! >> good to see you.

>> how are you doing? very good? >> you've got a smudge there. (laughter) >> thank you! >> good to see you. great pledge pleasure. good to see you. >> how's your grand son? all right? >> schieffer: this is american politics. >> somebody got some lipstick on me. >> pelley: and the house leadership is following the president in. there's eric cantor, the majority leader, congressman of virginia. and nancy pelosi, the minority leader, of course.

congresswoman of california. >> mr. president. >> good to see you again. how are folks doing back home? >> pelley: now, there's the first lady in her box. the woman standing to the left to the first lady's right but on your screen to the left of the first lady is cleopatra cowly. it was her 15-year-old daughter, hadiya pendleton who was shot and killed in chicago just a mile from the obamas' home in chicago. the young lady was an honors student and was a victim of random violence in that city. the first lady inviting her to

be here tonight to hear the president's remarks on gun safety and gun violence. >> schieffer: there's lindsey graham, scott, one of the president's toughest critics of late over the benghazi incident. but senator graham managed to get up there and shake hands with the president as he comes down the aisle. >> pelley: and there's the president with the chief justice of the united states john roberts jr. john roberts jr., who cast the vote that saved the president's signature achievement of his first term, the health care legislation. president greeting sonia sotomayor, one of the newest members of the supreme court. and elena kagan, the newest member. general martin dempsey, chairman of the joint chiefs of staff.

making his way to the podium now. and here's the president of the united states for his fifth state of the union address. (cheers and applause)

thank you! (cheers and applause) thank you. (applause) thank you. thank you. >> members of congress, i have the high privilege and distinct honor of presenting to you the president of the united states. (cheers and applause) >> thank you. thank you. (applause)

thank you very much. thank you so much. thank you. thank you very much. thank you. please everybody have a seat. mr. speaker, mr. vice president, members of congress, fellow americans. 51 years ago, john f. kennedy declared to this chamber that the constitution makes us not rivals for power but partners for progress. (applause) it is my task, he said, to

report the state of the union. to improve it is the task of us all. tonight, thanks to the grit and determination of the american people there is much progress to report. after a decade of grinding war, our drive men and women in uniform are coming home. (cheers and applause) after years of grueling recession, our businesses have created over six million new jobs. we buy more american cars than we have in five years and less foreign oil than we have in 20.

(applause) our housing market is healing. our stock market is rebounding. and consumers, patients, and homeowners enjoy stronger protections than ever before. (applause) so together we have cleared away the rubble of crisis and we can say with renewed confidence that the state of our union is stronger. (applause) but we gather here knowing that there are millions of americans whose hard work and dedication have not yet been rewarded. our economy is adding jobs, but too many people still can't find

full-time employment. corporate profits have skyrocketed to all-time highs, but for more than a decade wages and incomes have barely budged. it is our generation's task, then, to reignite the true engine of america's economic growth. a rising, thriving middle-class. (applause) it is our unfinished task to restore the basic ba bargain tht built this country. the idea that if you work hard and meet your responsibilities you can get ahead. no matter where you come from, no matter what you look like or who you love. it is our unfinished task to make sure that this government works on behalf of the many not just the few.

that it encourages free enterprise, rewards individual initiative, and opens the doors of opportunity to every child across this great nation. (applause) the american people don't expect government to solve every problem. they don't expect those of us in this chamber to agree on every issue. but they do expect us to put the nation's interests before party. (applause) they do expect us to forge reasonable compromise where we

can. for they know that america moves forward only when we do so together, and that the responsibility of improving this union remains the task of us all. now, our work must begin by making some basic decisions about our budget, decisions that will have a huge impact on the strength of our recovery. over the last few years, both parties have worked together to reduce the deficit by more than $2.5 trillion. mostly through spending cuts but also by raising tax rates on the wealthiest 1% of americans. as a result, we are more than halfway towards the goal of $4 trillion in deficit reductions that economists say we need to stabilize our finances. now we need to finish the job. and the question is: how? in 2011, congress passed a law saying that if both parties couldn't agree on a plan to

reach our deficit goal, about a trillion dollars worth of budget cuts would automatically go into effect this year. these sudden, harsh, arbitrary cuts would jeopardize our military readiness. they've devastate priorities like education and energy and medical research. they would certainly slow our recovery and cost us hundreds of thousands of jobs. that's why democrats, republicans, business leaders and economists have already said that these cuts-- known here in washington as the sequester-- are a really bad idea. now, some in congress have proposed preventing only the defense cuts by making even bigger cuts to things like education and job training, medicare and social security benefits.

that idea is even worse. (applause) yes, the biggest driver of our long-term debt is the rising cost of health care for an aging population. and those of us who care deeply about programs like medicare must embrace the need for modest reforms. otherwise, our retirement programs will crowd out the investments we need for our children and jeopardize the promise of a secure retirement for future generations. but we can't ask senior citizens and working families to shoulder the entire burden of deficit reduction while asking nothing more from the wealthiest and the most powerful. (applause)

we won't grow the middle-class simply by shifting the cost of health care or college on to families that are already struggling or by forcing communities to lay off more teachers and more cops and more firefighters. most americans-- democrats, republicans, and independents-- understand that we can't just cut our way to prosperity. they know that broad-based economic growth requires a balanced approach to deficit reduction with spending cuts and revenue. and with everybody doing their fair share. and that's the approach i offer tonight. on medicare, i'm prepared to enact reforms that will achieve the same amount of health care savings by the beginning of the next decade as the reforms proposed by the bipartisan simpson bowles commission. (applause) already, the affordable care act is helping to slow the growth of health care costs. (applause)

and the reforms i'm proposing go even further. we'll reduce taxpayer subsidies to prescription drug companies and ask more from the wealthiest. we'll bring down costs by changing the way our government pays for medicare, because our medical bills shouldn't be based on the number of tests ordered or days spent in the hospital, it was be based on the quality of care that our seniors receive. (applause) and i am open to additional reforms from both parties so long as they don't violate the guarantee of a secure retirement. our government shouldn't make promises we can not keep, but we must keep the promises we've already made. (applause)

to hit the rest of our deficit reduction target, we should do what leaders in both parties have already suggested and save hundreds of billions of dollars by getting rid of tax loopholes and deductions for the well off and the well connected. after all, why would we choose to make deeper cuts to education and medicare just to protect special interest tax breaks? how is that fair? why is it that deficit reduction is a big emergency justifying making cuts in social security benefits but not closing some loopholes? (applause) how does that promote growth? now is our best chance for bipartisan, comprehensive tax reform that encourages job creation and helps bring down the deficit.

(applause) we can get this done. (applause) the american people deserve a tax code that helps small businesses spend less time filling out complicated forms and more time expanding and hiring. a tax code that ensurings billionaires with high-powered accountants can't work the system and pay a lower rate than their hard-working secretaries. a tax code that lowers incentives to move jobs overseas and lowers tax rates for businesses and manufacturers that are creating jobs right here in the united states of america. (applause) that's what tax reform can deliver. (cheers and applause) that's what we can do together! i realize that tax reform and entitlement reform will not be

easy. the politics will be hard for both sides. none of us will get 100% of what we want. but the alternative will cost us jobs, hurt our economy, visit hardship on millions of hard-working americans. so let's set party interests aside and work to pass a budget that replaces reckless cuts with smart savings and wise investments in our future and let's do it without the bringsmanship that stresses consumers and scares off investors. the greatest nation on earth cannot keep conducting its business by drifting from one manufactured crisis to the next. (cheers and applause) we can't do it. (cheers and applause) let's agree right here right now to keep the people's government open and pay our bills on time

and always uphold the full faith and credit of the united states of america. (cheers and applause) the american people have worked too hard for too long rebuilding from one crisis to see their elected officials cause another. now -- (applause). -- most of us agree that a plan to reduce the deficit must be part of our agenda. but let's be clear. deficit reduction alone is not an economic plan. (applause) a growing economy that creates good middle-class jobs, that must be the north star that guides our efforts. (applause)

everyday we should ask ourselves three questions as a nation: how do we attract more jobs to our shores? how do we equip our people with the skills they need to get those jobs? and how do we make sure that hard work leads to a decent living? a year and a half ago i put forward an american jobs act that independent economists said would create more than one million new jobs and i thank the last congress for passing some of that agenda. i urge this congress to pass the rest. (applause) but tonight i'll lay out additional proposals that are fully paid for and fully consistent with the budget framework both parties agreed to just 18 months ago. let me repeat: nothing i'm proposing tonight should increase our deficit by a single dime. it is not a bigger government we need but a smarter government that sets priorities and invests

in broad-based growth. (applause) that's what we should be looking for. our first priority is making america a magnet for new jobs and manufacturing. after shedding jobs for more than ten years, our manufacturers have added about 500,000 jobs over the past three. cat pillar is bringing jobs back from japan. ford is bringing jobs back from mexico. and this year apple will start making macs in america again. (applause) there are things we can do right now to accelerate this trend. last year, we created our first manufacturing innovation institute in youngtown, ohio. a once shuttered warehouse is now a state-of-the-art lab where new workers are mastering the 3d

printing that has the potential to revolutionize the way we make almost everything. there's no reason this can't happen in other towns. so tonight i'm announcing the launch of three more of these manufacturing hubs where businesses will partner with the department of defense and energy to turn regions left behind by globalization into global centers of high tech jobs. and i ask this congress to help create a network of 15 of these hubs and guarantee that the next revolution in manufacturing is made right here in america. we can get that done. (applause) now, if we want to make the best products, we also have to invest in the best ideas. every dollar we invested to map the human genome returned $140

to our economy. every dollar. today scientists are mapping the human brain to help alzehimer's disease. they're devising new materials to make batteries ten times more powerful. now is not the time to gut these job creating investments in science and innovation. now is the time to reach a level of research and development not seen since the height of the space race. we need to make those investments. (applause) today no area holds more promise in investments than american energy. after years of talking about it we're finally poised to control our own energy future. we produce more oil at home than we have in 15 years.

we have double the distance our cars will go on a gallon of gas and the amount of renewable energy we generate from sources like wind and solar, with tens of thousands of good american jobs to show for it. we produce more natural gas than ever before. and nearly everyone's energy bill is lower because of it. and over the last four years, our missions of the dangerous carbon pollution that threatens our planet have actually fallen. but for the sake of our children and our future we must do more to combat climate change. (applause) now, it's true that no single event makes a trend. but the fact that s the 12 hottest years on record have all

come in the last 50. heat waves, droughts, wildfires, floods, all are now more frequent and more intense. we can choose to believe that superstorm sandy and the most severe drought in decades and the worst wildfires some states have ever seen were all just a freak coincidence or we can choose to believe in the overwhelming judgment of science and act before it's too late. (applause) now, the good news is, we can make meaningful progress on this issue while driving strong economic growth. i urge this congress to get together, pursue a bipartisan market-based solution to climate change like the one john mccain and joe lieberman worked on together a few years ago. but if congress won't act soon

to protect future generations i will. (applause) ly directly direct my cabinet to come up with executive actions we can take now and in the future to reduce pollution, prepare our communities for the consequences of climate change and speed the transition to more sustainable sources of energy. and four years ago other countries dominated the clean energy market and the jobs that came with it. we've begun to change that. last year, wind energy added nearly half of new power capacity in america. so let's generate even more. solar energy gets cheaper by the year. let's drive down costs even further. as long as countries like china keep going all in on clean energy so must we. in the meantime, the natural gas boom has led to cleaner power and greater energy independence. we need to encourage that. that's why my administration will keep cutting red tape and

speeding up new oil and gas permits. that's got to be part of an all of the above plan. but i also want to work with this congress to encourage the research and technology that helps natural gas burn even cleaner and protects our air and our water. in fact, much of our newfound energy is drawn from lands and waters that we the public own together. so tonight i propose we use some of our oil and gas revenues to fund an energy security trust that will drive new research in technology to shift our cars and trucks off oil for good. if a nonpartisan coalition of c.e.o.s and retired generals and admiral cans get behind this idea then so can we. let's take their advice and free our families and businesses from the painful spikes in gas prices we've put up with for far too long. i'm also issuing a new goal for america. let's cut in half the energy wasted by our homes and businesses over the next 20

years. (applause) we'll work with the states to do it. those states with the best ideas to create jobs and lower energy bills by constructing more efficient buildings will receive federal support to help make that happen. america's energy sector is just one part of an aging infrastructure badly in need of repair. ask any c.e.o. where they'd rather locate and hire-- a country with deteriorating roads and bridges or one with high-speed rail and internet, high tech schools, self-healing power grids. the c.e.o. of siemens america, a company that brought hundreds of new jobs to north carolina, said that if we upgrade our infrastructure they'll bring even more jobs. and that's the attitude of a lot of companies all around the world. and i know you want these jobs creating projects in your district. i've seen all those ribbon

cuttings. (laughter) so tonight i propose a fix it first program, to put people to work as soon as possible on our most urgent repairs. like the nearly 70,000 structurally deficient bridges across the country. (applause) and to make sure taxpayers don't shoulder the whole burden, i'm also proposing a partnership to rebuild america that attracts private capital to upgrade what our businesses need most-- modern ports to move our goods, modern pipelines to withstand a storm, modern schools worthy of our children. let's prove there's no better place to do business than here in the united states of america and let's start right away. we can get this done.

and part of our rebuilding effort must also involve our housing sector. the good news is, our housing market is finally healing from the collapse of 2007. home prices are rising at the fastest pace in six years. home purchases are up nearly 50% and construction is expanding again. but even with mortgage rates near a 50-year low, too many families with solid credit who want to buy a home are being rejected. too many families who never missed a payment and want to refinance are being told no. that's holding our entire economy back. we need to fix it. right now, there's a bill in this congress that would give every responsible home owner in america the chance to save $3,000 a year by refiennessing at today's -- refi nantzing at

today's rates. democrats and republicans are supported it before. so what are we waiting for? take a vote and send me that bill. (applause) why would we be against that? (applause) why would that be a partisan issue? helping folks refinance. right now overlapping regulations keep responsible young families from buying their first home. what's holding us back? let's streamline the process and help our economy grow. these initiatives in manufacturing, energy, infrastructure, housing all these things will help entrepreneurs and small business owners expand and create new jobs. but none of it will matter unless we also equip our citizens with the skills and training to fill those jobs. (applause)

and that has to start at the earliest possible age. you know, study after study shows that the sooner a child begins learning the better he or she does down the road. but today, fewer than 3-in-10 four-year-olds are enrolled in a quality program. most middle-class parents can afford a few hundred bucks a week for private preschool. and for poor kids who need help the most this lack of access to preschool education can shadow them for the rest of their lives. so tonight i propose working with states to make high-quality preschool available to every single child in america. (cheers and applause) that's something we should be able to do.

every dollar we invest in high quality early childhood education could save more than $7 later on by boosting graduation rates, reducing teen pregnancy, even reducing violent crime. in states that make it a priority to educate our youngest children-- like georgia or oklahoma-- studies show students grow up more likely to read and do math at great levels, graduate high school, hold a job form more stable families of their own. we know this works, so let's do what works and make sure none of our children start the race of life already behind. let's give our kids that chance! (applause)

let's also make sure that a high school diploma puts our kids on a path to a good job. right now, countries like germany focus on graduating their high school students with the equivalent of technical a technical degree from one of our community colleges. so those german kids, they're ready for a job when they graduate high school. they've been trained for the jobs that are there. now it's schools like p-tech in brooklyn, a collaboration between new york public schools and city university of new york and i.b.m., students will graduate with with a high school diploma and an associates degree in computers or engineering. we need to give every american student opportunities like this. (applause) and four years ago we started race to the top, a competition that convinced almost every state to develop smarter curricula and higher standards.

all for about of 1% of what we spent of education each year. tonight i'm announcing a new challenge: to redesign america's high schools so they better equip graduates for the demands of a high-tech economy. and we'll reward schools that develop new partnerships with colleges and employers and create classes that focus on science, technology, engineering and math. the skills today's employers are looking for to fill the jobs that are there right now and thereby in the future. now, even with better high schools, most young people will need some higher education. it's a simple fact: the more education you've got the more likely you are to have a good job and work your way into the middle-class. but today's skyrocketing costs price too many young people out of a higher education. or saddle them with unsustainable debt. through tax credits, grants, and better loans, we've made college

more affordable for millions of students and families over the last few years. but taxpayers can't keep on subsidizing higher and higher and higher costs for higher education. colleges must do their part to keep costs down, and it's our job to make sure that they do. (applause) so tonight i ask congress to change the higher education act so that affordability and value are included in determining which colleges receive certain types of federal aid. (applause) and tomorrow my administration will release a new college score card that parents and students can use to compare schools based on a simple criteria: where you can get the most bang for your educational buck. now, to grow our middle-class our citizens have to have access to the education and training that today's jobs require.

we also have to make sure that america is a place where everyone who's willing to work, everybody who's willing to work hard has the chance to get ahead. our economy is stronger when we harness the talents and ingenuity of striving, hopeful immigrants and right now leaders from the business, labor, law enforcement, faith communities, they all agree that the time has come to pass comprehensive immigration reform. (cheers and applause) now's the time to do it. now's the time to get it done. (cheers and applause) now's the time to get it done. real reform means stronger border security-- and we can build on the progress my administration's already made,

putting more boots on the southern border than at any time in our history. and reducing illegal crossings to their lowest levels in 40 years. real reform means establishing a responsible pathway to earn citizenship, a path that includes passing a background check, paying taxes in a meaningful penalty, learning english and going to the back of the line behind the folks trying to come here legally. (applause) and real reform means fixing the legal immigration system to cut waiting periods and attract the highly skilled entrepreneurs and engineers that will help create jobs and grow our economy. (cheers and applause) in other words, we know what needs to be done.

and as we speak, bipartisan groups in both chambers are working diligently to draft a bill and i applaud their efforts. so let's get this done. send me a comp hencive immigration reform bill in the next few months and i will sign it right away and america will be better for it. let's get it done. let's get it done. (applause) but we can't stop there. we know our economy is stronger when our wives, our mothers, our daughters can live their lives free from discrimination in the workplace and free from the fear of domestic violence. today, the senate passed the violence against women's act that joe biden originally wrote almost 20 years ago and i now urge the house to do the same. (applause) good job, joe.

and ski this congress to declare that women should earn a living equal to their efforts and finally pass the paycheck fairness act this year. (cheers and applause) we know our economy is stronger when we reward an honest day's work with honest wages. but today a full-time worker making the minimum wage earns $14,500 a year. even with the tax relief we put in place. a family with two kids that earns the minimum wage still lives below the poverty line. that's wrong. that's why since the last time this congress raised the minimum

wage, 19 states have chosen to bump theirs even higher. tonight let's declare that in the wealthiest nation on earth no one who works full time should have to live in poverty and raise the federal minimum wage to $9 an hour. (applause) we should be able to get that done. this single step would raise the incomes of millions of working families. it could mean difference t difference between groceries or the food bank, rent or eviction, scraping by or finally getting ahead. for businesses across the country it would mean customers were more money in their pockets. and a whole lot of folks out there would probably need less help from government. in fact, working folks should haven't to wait year after year for the minimum wage to go up while c.e.o. pays have never

been higher. so here's an idea that governor romney actually agreed on last year. let's tie the minimum wage to the cost of living so that it finally become assuage you can live on. (applause) tonight let's also recognize that there are communities in this country where no matter how hard you work it is virtually impossible to get ahead. factory towns decimated from years of plants packing up inescapable pockets of poverty, urban and rural, where young adults are still fighting for their first job america's not a place where the chance of birth or circumstance should decide our destiny. and that's why we need to build new ladders of opportunity into the middle-class for all who are willing to climb them. let's offer incentives to companies that hire americans who got what it takes to fill

that job opening but have been out of work so long that no one will give them a chance anymore. let's put people back to work rebuilding vacant homes and rundown neighborhoods. and this year my administration will begin to partner with 20 of the hardest hit towns in america to get these communities back on their feet. we'll work with local leaders to target resources at public safety and education and housing. we'll give new tax credits to businesses that hire and invest and we'll work to strengthen families by removing the financial deterrence to marriage for low-income couples and do more to encourage father hood because what makes you a man isn't the ability to conceive a child, it's having the courage to raise one. (applause) and we want to encourage that. we want to help that. (applause)

stronger families. stronger communities. stronger america. it is this kind of prosperity-- broad, shared, built on a thriving middle-class that has always been the source of our progress at home. it's also the foundation of our power an influence throughout the world. tonight we stand united in saluting the troops and civilians who sacrifice everyday to protect us. because of them, we can sway confidence that america will complete its mission in afghanistan and achieve our objective of defeating the core of al qaeda. (applause)

already we have brought home 33,000 of our brave servicemen and women. this string our forces will move into a support role while afghan security forces take the lead tonight i can announce that over the next year another 34,000 american troops will come home from afghanistan. this drawdown will continue and by the end of next year our war in afghanistan will be over. (cheers and applause) beyond 2014 america's commitment to a unified and sovereign afghanistan will endure. but the nature of our commitment will change. we're negotiating an agreement with the afghan government that focuses on two missions:

training and equipping afghan forces so that the country does not again slip into chaos and counterterrorism efforts that allow us to pursue the remnants of al qaeda and their affiliates. today the organization that attacked us on 9/11 is a shadow of its former self. (applause) it's true, different al qaeda affiliates and extremist groups have emerged, from the arabian peninsula to africa. the threat these groups pose is evolving. but to meet this threat, we don't need to send tens of thousands of our sons and daughters abroad or occupy other nations. instead, we'll need to help countries like yemen, libya and somalia provide for their own security and help allies who take the fight to terrorists as we have in mali. and, where necessary, through a range of capabilities we will continue to take direct action

against those terrorists who pose the gravest threat to americans. (applause) now, as we do, we must enlist our values in the fight. that's why my administration has worked tirelessly to forge a durable legal and policy framework to guide our counterterrorism efforts. throughout we have kept congress fully informed of our efforts. i recognize that in our democracy no one should just take my word for it that we're doing things the right way. so in the months aheadley continue to engage congress to ensuring not only that our targeting, detention and prosecution of terrorists remains consistent with our laws and system of checks and balances but that our efforts are even more transparent to the american people and to the

world. of course -- (applause). -- our challenges don't end with al qaeda. america will continue to lead the effort to prevent the spread of the world's most dangerous weapons. the regime in north korea must know they will only achieve security and prosperity by meeting their international obligations. provocations of the sort we saw last night will only further isolate them. as we stand by our allies, strengthen our own missile defense and lead the world in taking firm action in response to these threats. like wise, the leaders of iran must recognize that now's the time for a diplomatic solution, because a coalition stands united in demanding that they meet their obligations and we will do what is necessary to prevent them from getting a nuclear weapon. (applause)

at the same time we'll engage russia to seek further reductions in our nuclear arsenals and continue leading the global effort to secure nuclear materials that could fall into the wrong hands. because our ability to influence others depends on our willingness to lead and meet our obligations. america must also face the rapidly growing threat from cyber attacks. (applause) now we know hackers steal people's identities and infiltrate private e-mails. we know foreign countries and companies swipe our corporate secrets. now our enemies are also seeking the ability to sabotage our power grid, our financial institutions, our air traffic control systems. we can not look back years from now and wonder why we did nothing in the face of real threats to our security and our

economy. that's why earlier today i signed a new executive order that will strengthen our cyber defenses by increasing information sharing and developing standards to protect our national security, our jobs, and our privacy. (applause) but now congress must act as well bypassing legislation to give our government a greater capacity to secure our networks and deter attacks. this is something we should be able to get done on a bipartisan basis. (applause) now, even as we protect our people, we should remember that today's world presents not just dangers, not just threats, it presents opportunities. to boost american exports, support american jobs and level the playing field in the growing markets of asia we intend to

complete negotiations on a transpacific partnership. and tonight i'm announcing we will launch talks on a comprehensive transatlantic trade and investment partnership with the european union because trade that is fair and free across the atlantic supports millions of good-paying american jobs. (applause) we also know that progress in the most impoverished parts of our world enriches us all not only because it creates new markets, more stable order in certain regions of the world but also because it's the right thing to do. you know, in many places people live on little more than a dollar a day. so the united states will join with our allies to eradicate such extreme poverty in the next two decades by connecting more people to the global economy by empowering women, by giving our

young and brightest minds new opportunities to serve and helping communities to feed and power and educate themselves. by saving the world's children from preventable deaths and by realizing the promise of an aids-free generation, which is within our reach. (applause) you see, america must remain a beacon to all who seek freedom during this period of historic change. i saw the power of hope last year in rangoon, in burma when aung san suu kyi welcomed an american president into the home where she had been in prison for years. when thousands of burmese lined the streets waving american flags, including a man who said "there is justice and law in the united states." i want our country to be like

that. in defense of freedom we'll remain the anchor of strong alliances from the americas to africa, from europe to asia. in the middle east, we will stand with citizens as they demand their universal rights and support stable transitions to democracy. (applause) we know the process will be messy and we can not presume to dictate the course of change in countries like egypt. but we can and will insist on respect for the fundamental rights of all people. we'll keep the pressure on a syrian regime that has murdered its own people and support opposition leaders that respect the rights of every syrian. and we will stand steadfast with israel in pursuit of security and a lasting peace. (applause)

these are the messages i'll deliver when i travel to the middle east next month. and all this work depends on the courage and sacrifice of those who served in dangerous places at great personal risk. our diplomats, our intelligence officers and the men and women of the united states armed forces. as long as i'm commander-in-chief, we will do whatever we must to protect those who serve their country abroad and we will maintain the best military the world has ever known. (applause)

we'll invest in new capabilities even as we reduce waste and wartime spending. we will ensuring equal treatment for all service members and equal benefits for their families, gay and straight. (cheers and applause) we will draw upon the courage and skills of our sisters and daughters and moms because women have proven under fire that they are ready for combat. we will keep faith with our veterans, investing in world-class care, including mental health care for our wounded warriors. (applause) supporting our military families, giving our veterans

the benefits in education and job opportunities that they have earned. and i want to thank my wife michelle and dr. jill biden for their continued dedication to serving our military families as well as they have served us. (applause) thank you, honey. thank you, jill. (applause) defending our freedom, though, is not just the job of our military alone. we must all do our part to make sure our god-given rights are protected here at home. that includes one of the most fundamental rights of a democracy: the right to vote. (applause) (cheers and applause)

when any american no matter where they live or what their party are denied that right hrouz they can't afford to wait for five or six or seven hours just to cast their ballot we are betraying our ideals. (applause) so tonight i'm announcing a nonpartisan commission to improve the voting experience in america and it definitely needs improvement. i'm asking two long-time experts in the field who, by the way, recently served as the top attorneys for my campaign and for governor romney's campaign to lead it. we can fix this and we will. the american people demand it and so does our democracy. (applause)

of course, what i've said tonight matters it will until we don't come together to protect our most precious resource-- our children. it has been two months since newtown. i know this is not the first time this country has debated how to reduce gun violence. but this time is different. overwhelming majorities of americans-- americans who believe in the second amendment-- have come together around common sense reform. like background checks that will make it harder for criminals to get their hands on a gun. (applause) senators of both parties are

working together on tough new laws to prevent anyone for from buying guns for resale to criminals. police chiefs are asking our help to get weapons of war and massive ammunition magazines off our streets because these police chiefs, they're tired of seeing their guys and gals be outgunn outgunned. each of these proposals deserves a vote in congress. (cheers and applause) now, if you want to vote no that's your choice. but these proposals deserve a vote. because in the two months since newtown more than a thousand birthdays, graduations, anniversaries have been stolen from our live by a bullet from a

gun. more than a thousand. one of those we lost was a young girl named hadiya pendleton. she was 15 years old. she loved fig new tons and lip gloss. she was a majorette. she was so good to her friends they all thought they were her best friend. just three weeks ago she was here in washington with her classmates performing for her country at my inauguration. and a week later she was shot and killed in a chicago park after school. just a mile away from my house. hadiya's parents, nate and cleo, are in this chamber tonight along with more than two dozen americans whose lives have been torn apart by gun violence.

they deserve a vote. (applause) they deserve a vote. (applause) they deserve a vote. gabrielle giffords deserves a vote. (applause) the families of newtown deserve a vote. the families of aurora deserve a vote. the families of oak creek and tucson and blacksburg and the countless other communities ripped open by gun violence, they deserve a simple vote. (cheers and applause) they deserve a simple vote.

our actions will not prevent every senseless act of violence in this country. in fact, no laws, no initiatives, no administrative acts will perfectly solve all the challenges i've outlined tonight. but we were never sent here to be perfect. we were sent here to make what difference we can. to secure this nation. expant opportunity, uphold our ideals through the hard, often frustrating but absolutely necessary work of self-government. , we were sent out to look out for our fellow americans the same way they look out for one another every single day. usually without fanfare all across this country. we should follow their example.

we should follow the example of a new york city nurse named menchu sanchez. when hurricane sandy plunged her hospital dark into darkness she wasn't thinking about how her own home was faring, her mind was on the 20 precious newborns in her care and the rescue plan she devised that kept them all safe. we should follow the example of a north miami woman named desaline victor. when desaline arrived at her polling place she was told the wait to vote might be six hours. as time ticked by, her concern was not with her tired body or aching feet but whether folks like her would get to have their say. and hour after hour a throng of people stayed in line to support her. because desaline is 102 years old. and they erupted in cheers when she finally put on a sticker that read "i voted."

(cheers and applause) there's desaline. we should follow the example of a police officer named brian murphy. when a gunman opened fire on a sic temple in wisconsin, brian was the first to arrive and he did not consider his own safety, he fought back until help arrived and ordered his fellow officers to protect the safety of the fellow americans worshiping inside.

even as he lay bleeding from 12 bullet wounds. and when asked how he did that, brian said "that's just the way we're made." that's just the way we're made. we may do different jobs and where different yuan forms and hold different views than the person beside us but as americans we all share the same proud title we are citizens. it's a word that doesn't just describe our nationality or legal status, it describes the way we're made. it describe what is we believe. it captures the enduring idea that this country only works when we except certain obligations to one another and a future generations. that our rights are wrapped up in the rights of others and that

well into our third century as a nation it remains the task of us all as citizens of these united states to be the authors of the next great chapters of our american story. thank you, god bless you, and god bless these united states of america. (cheers and applause) >> pelley: the president's fifth state of the union address. the president leaving a podium after giving a hearty hand shake to the leader of the republican miss the house, speaker of the house john boehner. as the these state of the union

speeches often do, this speech covered a lot of ground. but some of the highlights included the president saying that by the end of next year "our war in afghanistan will be over." the president called for an increase in the minimum wage to $9 and, once again, repeated his call to cut spending and raise new tax revenue by closing loopholes something that the republican leadership did not want to hear this evening. a very different speech, bob schieffer, than the inaugural speech that we heard here just a few weeks ago. >> schieffer: well, this is one man's opinion but i also think it was a much better speech. i mean, the president's inaugural address had sort of a partisan lecture, tone about it. this was a political speech but it was well written, it had a beginning, a middle and an end. the president didn't just give

us a list of things he thought the nation would be better off if they did it, he gave some reasons for it. i mean, you know, he came out hard for climate control but he said, look, if you want to choose to think that this freak weather we're having is some sort of a coincidence, fine, but then he gave the reasons he didn't think that's what the reasons for it were. there were some things also in here that republicans can like. he talked about medicare cuts. he said he was ready to do what the simpson-bowles commission had said in the beginning. he talked about making it easier to drill for oil and gas, they will like that. and on immigration karl rove was tweeted out, i am told tonight, that this was -- could have much worse i think is the way he put it but he said now it's time for the president to stand back. but all in all this was a speech that had some music to it as

they used to say. he coined a few phrases in there, talk about the unfinished task before us, reminiscent of what lincoln said in the gettysburg address but all in all i thought this was a much better speech than we heard on his inauguration. >> pelley: and norah owe donnell, a much more conciliatory speech. >> o'donnell: a much more conciliatory speech and there was sustained applause when he talked about immigration reform and we saw senator mccain, a republican, and senator schumer, a democrat, senator lindsey graham, republican, harsh critic of the president there united trying to find a solution on immigration reform, sitting together. and the president said "let's get it done." that was one of the monikers of the night. the other big one, scott, was "they deserve a vote." he left the most emotional and perhaps the most controversial issue to the end of his speech which is on gun control, something that has not been mentioned in any of his

inaugural -- state of the union addresses, nor even in -- since president clinton has it been mentioned and personalizing it with all of the victims and saying gabrielle giffords deserves a vote, the 15-year-old hadiya pendleton deserves a vote, the families of newtown deserve a vote. and even john boehner, the speaker of the house, who opposes new gun control measures leapt to his feet to applaud on that. >> pelley: the president's been realistic about his chances of getting major gun control legislation through the republican house. he has said in the past that he's willing to take anything that he can get but the important thing, he says, is that we try to save lives from gun violence. a number of people, senator harry reid behind the president being one of them wearing green ribbons on their lapels tonight in solidarity with the victims from the newtown massacre in december. major garrett at s at the white

house for us tonight. major, what are the president's prospects on gun control? what does he think he can get? >> reporter: scott, it's very important that the president said "let's have a vote." in the rhetoric of legislative politics that means the president is not decidedly telling congress "let's pass this, i know we can do it." it is an open-faced concession that the politics of gun control, particularly when it comes to an assault weapons ban, so-called, or banning ammunition clips with ten bullets or more very difficult politically not just in the republican house but in the democratically controlled senate. when the president says "have a vote" he knows that's the best he can hope for in both chambers. now, the house republicans have made it very clear they are not going to do anything legislatively on the floor of the house until the senate acts itself and the white house today in the briefings leading up to the state of the union address were drawing intense attention to the fact that politically universal background checks has a very good chance of passing congress. nobody in the administration was talking about the assault weapon ban or a ban on high ammunition

magazine clips making it through. >> pelley: major, thank you. let's listen in for just a moment on this night of american history as the president makes his way out of the house chamber. >> something about florida. and, by the way, you know, those are some democratic counties that were having all those problems, too. you know? so there's no excuse. >> thank you very much. >> pelley: the president autographing copies of the speech. >> i thought it was awesome. great, great speech. >> pelley: nancy cordes is our capitol hill correspondent. nancy, a much more conciliatory speech but you have to wonder

whether a number of items like the minimum wage, like increasing revenue with closing of tax loopholes fell on deaf ears among many of the republicans in the chamber tonight. >> reporter: well, what republicans will say tomorrow scott is that democrats in the senate should go ahead and make the first move here they're going to sit back and see whether democrats can pass something like this in the democratically controlled senate before they bring it up in the house and that's true of immigration reform and gun control as well. they know that some of these measures like gun control face a lot of opposition not just from the republicans but from democrats who come from rural states, from southern states, from western states, and so they're not going to go out on a limb to help the president with his legislative agenda until the president can get his own party on board. >> schieffer: but you know, scott, the feeling of some republicans that the reason that some of these things did not come to a vote before is because

the president was trying to protect the members of his own party from having to take tough votes before the election. well, the election is now over and the president said "i want to see some votes here." and i think that's a perfectly legitimate thing for a leader to say. so we may see a little bit of a change. but it's going to be very tough. the republicans are going to start out with being against everything that costs any money. they want spending cuts. they say he has had his revenue so we'll see how the two sides will finally get together. that will be where the rubber hits the road. >> pelley: and there's a narrow window of time here because in another eight or 12 months these members will be worried about getting reelected. >> yup. >> pelley: and there's the president leaving the chamber now. coming up next, we will have the

republican response to the president from senator marco rubio of florida. we'll be right back with that. in america today we're running out of a vital resource we need to compete on the global stage. what we need are people prepared for the careers of our new economy. by 2025 we could have 20 million jobs without enough college graduates to fill them. that's why at devry university, we're teaming up with companies like cisco to help make sure everyone's is ready with the know how we need for a new tomorrow. [ male announcer ] make sure america's ready. make sure you're ready. at devry.edu. ♪

i'm up next, but now i'm singing the heartburn blues. hold on, prilosec isn't for fast relief. cue up alka-seltzer. it stops heartburn fast. ♪ oh what a relief it is! breaking news tonight. a body believed to be that of fired l.a.p.d. officer christopher dorner was recovered in a burned out california cabin. it was a shoot out earlier today between police and dorner. one deputy was killed another one wounded remains in the

hospital tonight. tonight at 11:00, we have analysis from a technical officer. right now we have more on wusa.com.

had his say on the state of the union. now it's time for the republicans to respond and they have chosen one of their rising stars, freshman senator marco rubio of florida, a 41-year-old son of cuban immigrants. he's widely discussed as a possible contender for the g.o.p. presidential nomination in 2016. senator rubio will be speaking tonight from the speaker's conference room at the capital. i. >> good evening, i'm